If the public believes the commitment to a nominal anchor to be credible, the effect of a positive aggregate demand shock is for ________
A) short-run aggregate supply to shift up
B) short-run aggregate supply to be unaffected
C) short-run aggregate supply to shift down
D) inflation, but not economic activity, to increase
B
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Which of the following is a microeconomic topic?
i. K-Mart's decision to close stores that are not making a profit ii. Home Depot's choice to hire more full-time employees because its sales increased iii. Delta Airlines changes its fares. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
A $25,000 price tag on a new car is an example of money as
A) a medium of exchange. B) a unit of account. C) a store of value. D) a time deposit.
FICA is a payroll tax imposed on employers and workers that is used to fund Social Security and Medicare. Which of the following statements regarding the tax is true?
A) Most economists believe the burden of the tax falls almost entirely on workers. B) Congress wanted the burden of the tax to be greater for employers than for workers. C) Most economists believe the burden of the tax falls mostly on employers. D) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.
Marginal utility
a. increases as more of a good is consumed b. increases as the total utility of consuming a good increases c. is the same as the utility of consuming a good d. is the same as the utility of consuming an additional unit of a good e. is the same for all units of a good, but varies from one consumer to another